Ocupational Health, Safety and Hygiene

  • A safety management system structured and certified in accordance with the OHSAS 18001:2007 standard at Pirelli Tyre S.p.A.
  • The DuPont method is characterised by emphasising safety as a strategic factor, a tool for motivation and participation in corporate management and a culture factor.
  • The accident frequency index (FI) in 2010 fell overall by 13% from 2009 nad the gravity index (GI) was reduced by 29% from 2009.
  • In 2010 health and safety investments by Pirelli Tyre totalled Euro 11 million.
  • This is Pirelli’s second partnership with EU-OSHA,which aimed to promote a participatory approach to the assessment of risks, based on consultation and participation by everyone at the workplace.
  • Reduction of Pirelli Tyre industrial FI: -40% vs 2009

“The Pirelli Group safeguards health, safety and industrial hygiene in the workplace, both through management systems that are continually improving and developing and by promoting an approach to health and safety based on prevention and the effective handling of occupational risk.”
(Codice Etico – Risorse Umane).

“The Pirelli Group pursues and supports compliance with internationally proclaimed human rights. Pirelli considers protection of the integrity, health and welfare of its employees and the environment as one of the primary needs to be satisfied in organising and developing its activities. ...(omitted)...
The Pirelli Group is committed to:

  • management of its activities by adopting occupational health, safety and rights and environmental policies in compliance with the highest international standards;
  • the dissemination of occupational health, safety and rights and environmental information to its internal and external stakeholders, both by communicating with them and actively co-operating with national and international government and academic bodies;
  • promoting use of the most advanced technologies to achieve excellence in occupational health and safety and environmental protection;

(Social Responsibility for Health, Safety and Labour Rights and the Environment Policy”)

“The Pirelli Group considers protection of the integrity, health and well-being of its employees as one of the basic and general elements in defining its own strategies and objectives, in view of obtaining ever-more competitiveness on the global market on a long-lasting and sustainable basis.”
(“Quality Policy”)

The management approach to Occupational Health, Safety and Hygiene is based on the principles and commitments set out in the cited Sustainability documents, which are discussed in the introductory section of this report and whose complete text has been distributed to all Group employees in their local languages as well as having been published in the “Sustainability” section of www.pirelli.com.

Safety management system

A safety management system structured and certified in accordance with the OHSAS 18001:2007 standard at Pirelli Tyre S.p.A. (which also includes the plants for production of steel cord) has been established. At December 31, 2010, 19 out of 21 currently existing Tyre business production areas were certified according to this standard. Another Tyre production plant in Venezuela will be certified in 2011, in addition to the Eco Technology plant operating in Romania. The Safety Management System implemented at the Pirelli Tyre production units has been developed on the basis of centrally drafted common procedures and guidelines. This has enabled the use of a common language within the Group, in terms of the identification of the key elements of occupational safety management and a uniform, shared mode of operations.

Beginning in 2011, although the current management systems are perfectly in compliance of the OHSAS 18001 standard, all compliance certifications will be issued in accordance with the SAS international accreditation system (SAS is the Swiss accreditation entity that evaluates and accredits compliance assessment bodies – laboratories, inspection and certification bodies – in accordance with international standards).

Occupational safety: a matter of culture before anything else

The Safety Excellence Project (launched in 2009) continued in 2010. It aims to introduce the DuPont method (best in class for decades) in our production units, beginning with the new Settimo Torinese Industrial Centre.

The DuPont method is characterised by emphasising safety as:

  • a strategic factor that goes beyond the corporate dimension to involve the personal, family and social sphere;
  • a tool for motivation and participation in corporate management that demands effort to maintain the high level of attention necessary to obtain results;
  • a culture that develops tools and involvement to guarantee one’s own safety and other persons’ safety.

In 2010 the Excellence in Safety project of the New Industrial Centre developed various “pillars” including:

  • integration of the Health and Safety concepts in the site vision;
  • development of performance indicators with a special focus on leading KPIs, i.e. the indicators of activities that are performed to prevent accidents and involve the population
  • training and coaching of all managers, supervisors and blue collar workers on DuPont concepts;
  • application of Safety Discussions and “10minutes” Informational Briefings;
  • identification and training of Safety Champions amongst blue collar staff;
  • development of other “pillars” in 2011, including management of contractors and “30minutes” Participation meetings.

On conclusion of the project (scheduled in 2011), DuPont will conduct a re-assessment to assess the progress of safety culture, which will be measured with the Bradley Curve.

The Project was also launched in South America in 2010. In particular, the five Brazilian product sites were assessed with the direct participation of DuPont. The visits at these centres involved extensive participation by company employees (including the use of questionnaires and discussions with about 20% of staff) and provided indications about certain Quick-Wins and opportunities for improvement. The assessment output was shared with South American top management and a detailed action plan was then defined for implementation over the two-year period 2011-2012.

The principles and guidelines for Excellence in Safety have already been distributed to the other operating units.

The Group’s commitment on Health and Safety also included the participation of Industrial Relations through the involvement of trade unions in many of the companies where Pirelli has a presence and in compliance with local legislation. Mixed company – union representative committees have been set up at several plants, where current issues and awareness and action plans/programmes are periodically monitored and addressed, with the support of specialists.
Among the various initiatives undertaken, the Excellence in Safety project, being a particularly innovative accident prevention training plan, was the object of an agreement with the Turin Centre trade unions for its financing, translating into the offering of eight classroom hours and two practice hours for each employee in 2010.

In 2010 initiatives were taken to change internal culture, including the monthly newsletter Safety Bulletin and the periodic publication of significant events through traditional internal communication channels.

The “Pirelli HSE Campus” and sharing of best practices

Among the various health and safety education initiatives, the Pirelli HSE Campus – launched in 2009 – was also particularly successful in 2010. Training activities at this campus were increased from 2009 and involved by about 160 persons at the plants in Turkey, Egypt, Romania, South America and China for a total of about 4000 classroom hours.
The tests administered at the end of each module confirmed the validity of and satisfaction with the programme. Since 2010, the symbol flag for our target is also distributed at the end of each training module: “TARGET ZERO INJURIES”.

For 2010-2011 Pirelli is an official partner of the Campaign for Healthy and Safe Workplaces of the European Agency for Health and Safety at Work (EUOSHA), launched on April 28, 2010 by the European Commissioner for Work, Social Policies and Integration, László Andor. The object of the campaign was “Safe Maintenance”. Target: reduce the number of workplace accidents tied to maintenance practices.

This is Pirelli’s second partnership with EU-OSHA, after the partnership last year based on the “Risk Assessment”, which aimed to promote a participatory approach to the assessment of risks, based on consultation and participation by everyone at the workplace.

Another activity sponsored by the Group was the Pirelli 2010 international HSE meeting, held in Istanbul and at the Izmit Tyre and Steel Cord plants from November 9 to 12, 2010. In a context for sharing methods and best practices, classroom lessons and workshops at plants, the meeting was attended by Heike Klempa, Campaigns Manager at EU-OSHA, who presented values and objectives of the “Safe Maintenance” campaign.

The world HSE meeting, which has now been held for three years in a row, also aimed at sharing best practices applied to various world sites. Both theoretical issues and practical applications at production sites were dealt with at the meeting.

Activities involving the participation of maintenance personnel were held and specific training days were organised at various production sites.

The issues to be dealt with at the first Pirelli HSE Week to be held simultaneously at all production sites worldwide are being defined for 2011.

Monitoring of performances and sharing of experiences

In parallel with the definition of specific guidelines and procedures for creating and implementing management systems, there is a web-based management system for “Health, Safety and Environment Data Management” (HSE DM). Created and operated at the corporate level by the Health, Safety and Environment Department, this system permits the monitoring of HSE performance at every production plant in the Tyre Sector and the preparation of a wide variety of reports that are required for management and operational purposes.
In particular, the HSE-DM system collects all information about accidents that occur in factories (accident analysis, adopted corrective measures, etc.). If the dynamics of the specific case are significant, all plants are not only provided with the information but also urged to conduct an internal audit as to whether conditions similar to the ones that caused the injury exist at their plants too and define any corrective measures. This information system is used to collect the solutions adopted by the various sites and share those that are considered the best.

Performance

The accident frequency index (FI) (the ratio of the number of reported accidents to the number of hours actually worked) in 2010 fell overall by 13% from 2009.

The gravity index (GI) was reduced by 29% from 2009.

The trend for the frequency index at Pirelli Tyre industrial was particularly significant. It fell by 14% from the previous year and by 27% over the 2008-2010 period.

To better understand these data, it should be kept in mind that the GI was calculated by considering all calendar days (excluding the date of the accident) between the injured person’s work interruption and the employee’s return to the factory as “lost,” i.e. the actual days necessary for complete rehabilitation.
Calculation of the aforementioned indices does not include the accidents that occur during work-related travel, which will be referred separately in the specific table below and that in 2010 confirm a positive trend of reductions from 2008 (-22%).

The following tables illustrate the performance of FI, GI and accidents occurred during work-related travel, broken down by business. The calculation of the indicators refers to the activities performed by both industrial and office employees. The frequency and gravity indicators regarding external enterprises are not calculable.

  Frequency Index (FI)
2010 2009 2008
SCOPE  
Tyre (Total: Industrial + Commercial) 1.60 1.87 2.18
Other Businesses (Corporate + Eco Technology + Ambiente + P Zero) 0.33 0.45 0.25
PIRELLI TOTAL (continuing operations)  1.57 1.83 2.15
Result of discontinued operations (PBS+PRE*) 0.27 0.10 0.21
PIRELLI TOTAL (continuing operations + discontinued operations) 1.53 1.76 2.06

* PBS+PRE = Pirelli Broadband Solutions+ Pirelli Real Estate, now Prelios, discontinued in 2010

  Gravity Index (GI)
2010 2009 2008
SCOPE
Tyre (Total: Industrial + Commercial) 0.38 0.54 0.46
Other Businesses (Corporate + Eco Technology + Ambiente + P Zero) 0.12 0.13 0.01
PIRELLI TOTAL (continuing operations) 0.37 0.53 0.45
Result of discontinued operations (PBS+PRE*) 0.06 0.02 0.02
PIRELLI TOTAL (continuing operations + discontinued operations) 0.36 0.51 0.43

injuries on business travel
201020092008
SCOPE   
Tyre (Total: Industrial + Commercial) 110 108 134
Other Businesses (Corporate + Eco Technology + Ambiente + P Zero) 2 5 3
PIRELLI TOTAL (continuing operations) 112 112 137
Result of discontinued operations (PBS+PRE*) 3 6 11
PIRELLI TOTAL (continuing operations + discontinued operations) 115 119 148

* PBS+PRE = Pirelli Broadband Solutions+ Pirelli Real Estate, now Prelios, discontinued in 2010

Our best performers 2010

At Pirelli Tyre industrial facilities, two production sites achieved the Zero Accident target: Cord Romania, MIRS Rome (USA). These results were obtained thanks to the commitment made by head management and staff to engagement on HSE issues of all factory functions, constant training and awareness at all levels and, finally, research on the final causes in the analysis of Group accidents considered as potential near-misses at its own site.

Fatal accidents

Once more in 2010, no Pirelli employee or employee of outside contractors working at the Group's operating sites suffered a fatal accident.

Occupa tional Diseases

As can be observed in the following table, the Frequency Index (FI) of occupational diseases at the company fell over the three-year period, to 0.25 (-25%) in 2010.

  FI occupational diseases
2010 2009 2008
SCOPE    
Tyre (Total: Industrial + Commercial) 0.26 0.29 0.35
Other Businesses (Corporate + Eco Technology + Ambiente + P Zero) 0.00 0.00 0.00
PIRELLI TOTAL (continuing operations)  0.25     0.28 0.34
Result of discontinued operations (PBS+PRE*) 0.00 0.00 0.00
PIRELLI TOTAL (continuing operations + discontinued operations) 0.25 0.27 0.33

* PBS+PRE = Pirelli Broadband Solutions+ Pirelli Real Estate, now Prelios, discontinued in 2010

Health and Safety investments

In 2010 health and safety investments by Pirelli Tyre totalled Euro 11 million.

PIRELLI TYRE INVESTMENTS
2010 11
2009 10
2008 11.3

The expenditure made in 2010 targeted improvements on machineries and plant and, more in general, workplace environment as a whole (e.g. improvement of microclimate and lighting conditions, changes in layout for ergonomic improvement of activities, measures to protect the healthfulness of infrastructure, etc.).

Achievement of 2010 environmental targets
QUANTITATIVE
2010 Reduction of Pirelli  Tyre industrial FI by 10% vs 2009 WIDELY SATISFIED
2010 Increase in total number of HSE Campus  training hours > 100 hours WIDELY SATISFIED
QUALITATIVE
2010 Monthly monitoring of training hours SATISFIED
2010 Extension of HSE Campus activities to LATAM plants SATISFIED
2010 Audit of level  of application of Group Risk  Assessment standard UNDER WAY
2010 Targeted investments to resolve riskiest situations SATISFIED

New short and medium-term targets
QUANTITATIVE
2011 -2013 Reduction of Pirelli Tyre industrial FI: -40% vs 2009

QUALITATIVE
2011 Organisation of first Pirelli HSE WEEK at all sites  worldwide
2011 Definition of a new Group standard for maintenance activities
2011 OHSAS18001 certification of the Eco Technology plant in Bumbesti, Romania
2011 OHSAS18001 certification of Guacara plant in Venezuela
2011 “Safety Bulletin” focused on leading safety indicators
2011  - 2012 Consolidation of new POWRA (point of work risk assessment) tool for maintenance activities
2011  - 2012 Integration of HSE module in Process Kaizen Engineer training process
2011  - 2012 Definition of a Group standard for non-monetary rewarding for HSE